Statutory Instruments
2008 No. 2450
Pensions
The Occupational and Personal Pension Schemes (Transfer Values) (Amendment) Regulations 2008
Made
18th September 2008
Laid before Parliament
22nd September 2008
Coming into force
13th October 2008
The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by sections 97(1) and (2)(b), 101AF(1), (3)(b) and (4)(b), 181(1), 182(2) and (3) and 183 of the Pension Schemes Act 1993( 1 ).
Citation and commencement
1. These Regulations may be cited as the Occupational and Personal Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and shall come into force on 13th October 2008.
Amendment of the Personal Pension Schemes (Transfer Values) Regulations 1987
2. —(1)The Personal Pension Schemes (Transfer Values) Regulations 1987( 4 ) are amended in accordance with this regulation.
(2) In regulation 3(2) (manner of calculation and verification of cash equivalents)( 5 ), after “realisable value” insert “at the date of calculation”.
Amendment of the Occupational Pension Schemes (Transfer Values) Regulations 1996
3. —(1)The Occupational Pension Schemes (Transfer Values) Regulations 1996( 6 ) are amended in accordance with this regulation.
(2) In regulation 7B (initial cash equivalents for salary related benefits: assumptions)( 7 )—
(a) for the heading and paragraph (1), substitute—
“ Initial cash equivalents for salary related benefits: assumptions and guidance
7B. —(1) The trustees must calculate the initial cash equivalent for salary related benefits—
(a) by using the assumptions determined under this regulation; and
(b) where the scheme falls within paragraph (6), in accordance with the guidance referred to in that paragraph. ” ;
(b) in paragraph (4), for “The trustees must” substitute “Except where the scheme falls within paragraph (6), the trustees must”; and
(c) after paragraph (5), insert—
“ (6) A scheme falls within this paragraph if it is a public service pension scheme in respect of which guidance has been prepared, and from time to time revised, by the Treasury for calculating the discount rates ( 8 ) . ” .
(3) In regulation 7C(2) (manner of calculation of initial cash equivalents for money purchase benefits)( 9 ), after “realisable value” insert “at the date of calculation”.
Amendment of the Occupational Pension Schemes (Early Leavers: Cash Transfer Sums and Contribution Refunds) Regulations 2006
4. —(1)The Occupational Pension Schemes (Early Leavers: Cash Transfer Sums and Contribution Refunds) Regulations 2006( 10 ) are amended in accordance with this regulation.
(2) In regulation 2B (initial cash transfer sum for salary related benefits: assumptions)( 11 )—
(a) for the heading and paragraph (1), substitute—
“ Initial cash transfer sum for salary related benefits: assumptions and guidance
2B. —(1) The trustees or managers must calculate the initial cash transfer sum for salary related benefits—
(a) by using the assumptions determined under this regulation; and
(b) where the scheme falls within paragraph (6), in accordance with the guidance referred to in that paragraph. ” ;
(b) in paragraph (4), for “The trustees or” substitute “Except where the scheme falls within paragraph (6), the trustees or”; and
(c) after paragraph (5), insert—
“ (6) A scheme falls within this paragraph if it is a public service pension scheme in respect of which guidance has been prepared, and from time to time revised, by the Treasury for calculating the discount rates ( 12 ) . ” .
(3) In regulation 2C(2) (manner of calculation of initial cash transfer sums for money purchase benefits)( 13 ), after “realisable value” insert “at the date of calculation”.
(4) In regulation 2D (alternative manner of calculating and verifying cash transfer values)( 14 )—
(a) in the heading, for “cash transfer values” substitute “cash transfer sums”; and
(b) in all four places where “cash transfer value” appears, substitute “cash transfer sum”.
Signed by authority of the Secretary of State for Work and Pensions.
Mike O’Brien
Minister of State,
Department for Work and Pensions
18th September 2008
1993 c.48 . Section 101AF was inserted by section 264 of the Pensions Act 2004 (c.35) . Section 183 was amended by paragraph 45 of Schedule 3, paragraph 79 of Schedule 5 and paragraph 15 of Schedule 6, to the Pensions Act 1995 (c.26) , paragraph 42 of Schedule 12 to the Welfare Reform and Pensions Act 1999 (c.30) and paragraph 32 of Schedule 12 to the Pensions Act 2004. Section 181(1) is cited for the meaning it gives to “prescribed” and “regulations”.
Section 185(1) was amended by paragraph 46 of Schedule 3, and paragraph 80(a) of Schedule 5, to the Pensions Act 1995.
Full consultation was carried out on S.I. 2008/1050 . These Regulations implement changes from that consultation.
Regulation 3(2) was substituted by S.I. 2008/1050 .
Regulation 7B was inserted by S.I. 2008/1050 .
The Treasury have issued guidance entitled “Basis for setting the discount rate for calculating cash equivalent transfer values payable by public service pension schemes”. A copy of the guidance can be obtained from The Correspondence & Enquiry Unit, 2/W1, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and public.enquiries@hm-treasury.gsi.gov.uk. It is also available on the internet at http://www.hm-treasury.gov.uk/documents/taxation_work_and _welfare/public_service_pensions/tax_pensions_guidance.cfm.
Regulation 7C was inserted by S.I. 2008/1050 .
Regulation 2B was inserted by S.I. 2008/1050 .
The Treasury have issued guidance entitled “Basis for setting the discount rate for calculating cash equivalent transfer values payable by public service pension schemes”. A copy of the guidance can be obtained from The Correspondence & Enquiry Unit, 2/W1, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and public.enquiries@hm-treasury.gsi.gov.uk. It is also available on the internet at http://www.hm-treasury.gov.uk/documents/taxation_work_and _welfare/public_service_pensions/tax_pensions_guidance.cfm.
Regulation 2C was inserted by S.I. 2008/1050 .
Regulation 2D was inserted by S.I. 2008/1050 .